| Good morning Voornaam,
Highlights in this edition of Ghost Mail:
Grindrod has a good news story at the Port of Maputo Lamborghini's annual sales surpassed 10,000 units Burberry's profit warning suggests that luxury is suffering a correction Recap JSE news in the most efficient way possible with the Ghost Wrap podcast, thanks to Mazars TreasuryONE on the risk-off climate and the impact on the rand and commodities
Local company news:
In Ghost Bites this morning, you'll learn that Grindrod is having a jolly old time with its Maputo Port Development company investment. Transnet keeps making a fool of itself, which means the Mozambique infrastructure continues to grow as a viable alternative. Just yesterday, there was a ridiculous story about two coal trains having a collision locally! More and more people are starting to believe that Transnet is being sabotaged, as there are many local industries that benefit from the trains not working. Whatever the truth, one thing we know is that Grindrod is sitting on a decent asset in Mozambique.
You'll also find the latest from Kibo Energy, with the company trying hard to keep investors interested. Ninety One has managed to grow its Assets Under Management over the past three months, although the year-on-year number is still down. Finally, there are some odd potential transactions at Trustco.
Get all the details you need on these stories in Ghost Bites at this link>>>
For a really useful recap on recent JSE news, you need just a few minutes of your time to listen to the Ghost Wrap podcast. Brought to you by Mazars, the first episode of 2024 covers Merafe, Pick n Pay, Frontier Transport and PGM duo Tharisa and Northam Platinum. Check it out here>>>
International company news:
Make sure you've checked out Dominique Olivier's excellent piece on the safety culture at Boeing (or lack thereof).
There's a lot of talk around the luxury sector, particularly after such an excellent performance during the pandemic that thrust the likes of LVMH firmly into the headlines. As we warned when we covered the stock in Magic Markets Premium, the May 2023 share price for LVMH simply looked too high. Today, it's trading over 25% lower than those highs.
The latest profit warning from Burberry has done nothing to allay the fears of investors in this sector. Here's a fun fact for you: if you had bought shares in Burberry back in March 2011, your capital return would be absolutely nothing. Zero. Nada. All you would have is dividends and regret that you hadn't bought one of the coats instead.
The question is whether this is a broader sector problem or an issue that is more specific to Burberry. According to various online reports, the company has been struggling to create enough social media hype around the recent ranges. However, a slowdown in the Americas is clearly evident and Burberry isn't the only luxury group experiencing challenges in that region.
LVMH is due to report earnings on 25th January and all eyes in this sector will be on that release.
And although the fashion houses may be struggling at the moment, it seems that luxury cars are doing just fine thanks. Lamborghini sold more than 10,000 units last year for the first time, with the Urus SUV as the obvious major contributor here. The SUV market is key to car manufacturers and I think that the Purosangue will prove to be an exceptional money-spinner for Ferrari. Lamborghini still sells significantly fewer cars than Ferrari, so there's room to grow for the Volkswagen-owned business.
For more international company news, the most recent Magic Markets podcast covers Pandora and Swatch as international speciality retail businesses. Brought to you by data and automation specialists B2IT, Magic Markets is a fantastic way to learn more about global stocks. You can listen to the show here>>> |
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| READ: Boeing, Boeing, Gone!
(by Dominique Olivier) |
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| With Boeing in the news again for all the wrong reasons, Dominique Olivier shows the dark side of M&A and how the quest to cut costs can lead to tragedies.
This is a great article and an important read. |
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| Currencies, commodities and rates: TreasuryONE Market Update There's a lot going on geopolitically. Trump's win in the Iowa caucus, a missile strike on a US-owned ship in the Gulf and generally hawkish comments from the World Economic Forum in Davos have seen markets trim some bets on the timing and pace of central bank cuts. US bond yields have been trading higher, with the 10-year yield at 4.05%.
The risk-off flavour to the markets is good for the dollar and thus negative for the rand and commodities. The rand is now only slightly below R19, gold is down 0.7% and PGMs had a horrid day. Brent Crude is at $77.73 this morning.
To understand more about these volatile times, watch the TreasuryONE weekly market review below or at this link on their excellent YouTube channel. |
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| LISTEN: Magic Markets podcast |
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| In Episode 157 of Magic Markets, we dived into the recent results and strategic drivers at Pandora and Swatch. Although they are effectively adjacent to each other in the speciality retail space, the share price performance couldn't be more different in the past year.
Why is that the case? Find out in this podcast brought to you by international data and automation specialists B2IT. |
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| LISTEN: What to do with those festive savings
with Siyabulela Nomoyi of Satrix |
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| | | Saving and investing over December - January isn't easy. To keep you inspired, Siya joined me to cover a wide range of ETF topics - along with some tips of how to keep those goals going over this period of endless spending! |
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| READ: Letter from the Editor - from Cape to Clarens |
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| | | A roadtrip across South Africa is always a treat. Of course, it's also a way to see what is really going on out there.
I wrote about my experience from Cape Town to Clarens (and back again!) |
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| You should expect us in your inbox Monday – Friday. If you don’t receive an email, please check your spam, or junk folder and “move us” into your primary inbox to ensure you get it each morning.
Disclaimer
Our content is intended to be used and must be used for informational purposes only. You must do your own analysis before executing any investments or strategic decisions, based on your own circumstances. We do not provide personalised recommendations or views as to whether an investment approach or corporate strategy is suited to the needs of a specific individual or entity. You should take independent financial advice from a suitably qualified individual who gives due regard to your personal circumstances.
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The views, thoughts and opinions expressed in our content belong solely to the author or quoted individuals and/or entities, and not necessarily to the author's employer, organisation, committee or other group or individual, or any of our affiliates or brand partners. |
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